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SD for school fees from redwoods - help? - ** RESOLVED **

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I have been referred to this site and told there are som great people who can help me?

 

In short, my income has been hit by the credit crunch since 2009 and since we have run into all kinds of difficulties.

 

 

Our house was repossessed in the summer wirh an outright repossesion order.

We were able to clear the arrears and have been up to date since

so the mortgage company has agreed in writing not to enforce as ling as payments remain up to date.

 

This morning we received a statutory demand under section 268(1)a relating to £25k we owe.

This is for school fees from when we had money and adverse circumstances and has been issued by the school through Redwoods.

The school has been very patient with us and my understanding was that Redwoods would look to arrange a payment plan with us.

 

 

I would like to get some answers to the following:

 

1. Does this mean they have filed for bankruptcy?

This is an official document but not from the court.

There is also no court date given, although the local court is mentioned.

 

2. We have been given 18 days to respond from the date of service, which is 14th October.

This only gives us 6 days to respond, so can we contest why it took so long for us to receive the letter?

 

3. Given that an outright repossesion order is in place,

would Redwoods be able to bankrupt us and enforce sale of the property?

Surely the mortgage company have priority on this?

 

Any helpful information would be gratefully received. Thanks, D

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A SD is the first step to bankruptcy. You say the school is being patient, so you need to find out why the SD is issued. If the school sold the debt on, then there is something VERY wrong with the debt.


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Welcome to CAG .A statutory demand is the first step in the BR process, unless it is satisfied or set aside by a court the creditor can issue a petition to bankrupt you.

I take you mean 14 NOV to respond?

 

I'm sure others will be along to advise when available.


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Welcome to CAG .A statutory demand is the first step in the BR process, unless it is satisfied or set aside by a court the creditor can issue a petition to bankrupt you.

I take you mean 14 NOV to respond?

 

I'm sure others will be along to advise when available.

 

No, it was issued 14th October, we received it today and we have 18 days from 14th October, which is next week!

 

Does the repossession affect their ability to bankrupt us?

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A SD is the first step to bankruptcy. You say the school is being patient, so you need to find out why the SD is issued. If the school sold the debt on, then there is something VERY wrong with the debt.

The creditor is listed as the school so I assume they haven't sold it.

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If the school sold the debt on, then there is something VERY wrong with the debt.

 

This is simply subjective puff. A creditor can pass a debt to a DCA in whatever circumstances they like. And Schools often do enlist DCAs from my experience, but the usually just get the DCA to do the chasing (whilst they remain the creditor) - as the above posts affirms.

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What i meant seq was that due to the amount owing, youd have to check the debt very carefully.


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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This is simply subjective puff. A creditor can pass a debt to a DCA in whatever circumstances they like. And Schools often do enlist DCAs from my experience, but the usually just get the DCA to do the chasing (whilst they remain the creditor) - as the above posts affirms.

So what should i do?

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Do you have equity in the property?

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Do you have equity in the property?

 

Yes about £100k but as previously mentioned, there is an outright repossesion order in place.

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Wouldn't the mortgage company have rights over this creditor regarding the property?

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Wouldn't the mortgage company have rights over this creditor regarding the property?

 

No. If the bankruptcy goes ahead you're very likely to lose the house.

 

You'll need to either negotiate affordable payments that they accept or consider offering a voluntary charge on the property. The beauty of the latter is that you can seek a contractual agreement to have furtehr interest and charges frozen and an agreement not to ever seek an order to sell the property.

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Interestingly who is the DCA?

 

Also sequenci is right... Youll lose the house as it is an asset you own regardless of if mortgaged.

However also like Sequenci said its put you in a unique situation...

 

How much can you afford realistically to pay towards the 25k per month?


 

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No. If the bankruptcy goes ahead you're very likely to lose the house.

 

You'll need to either negotiate affordable payments that they accept or consider offering a voluntary charge on the property. The beauty of the latter is that you can seek a contractual agreement to have furtehr interest and charges frozen and an agreement not to ever seek an order to sell the property.

 

I'm very surprised that a repossesion order that is in force can be superceded but that really is bad news!

 

What about the fact that we only have 6 days now to respond because of delay in receiving the demand tonight.

 

Surely that isn't right?

 

I will look at a charging order with the lender, but what else can we do?

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I'm very surprised that a repossesion order that is in force can be superceded but that really is bad news! What about the fact that we only have 6 days now to respond because of delay in receiving the demand tonight. Surely that isn't right? I will look at a charging order with the lender, but what else can we do?

 

We suggested a voluntary charge with the school before and they were open to it, but the repossession case took our focus off of this. I will phone the mortgage company on Monday - is there anything else we can do?

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I figured it was 5 days for service + 18 days to respond for SD.... To allow delivery times...


 

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Interestingly who is the DCA?

 

Also sequenci is right... Youll lose the house as it is an asset you own regardless of if mortgaged.

However also like Sequenci said its put you in a unique situation...

 

How much can you afford realistically to pay towards the 25k per month?

 

At the moment nothing, but the irony is that I am starting a new job as a mortgage broker in 2 weeks. The reason for the meltdown was because of the market and this is the first job in 4 years which realistically gives us a very good chance of earning good money in 2-3 months. At that time £500 per month could be feasible.

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At the moment nothing, but the irony is that I am starting a new job as a mortgage broker in 2 weeks. The reason for the meltdown was because of the market and this is the first job in 4 years which realistically gives us a very good chance of earning good money in 2-3 months. At that time £500 per month could be feasible.

 

You have 18 days from the date the SD was received to apply for the set aside.

 

You need to avoid bankruptcy, as I think you may struggle to keep the job as a Mortgage Advisor if you are bankrupted. If you are employed within financial services, your personal financial conduct can lead to your employment being ended. Working in Insurance, I have come across staff having problems when they just have a CCJ against them.

 

For this reason, you have to take this situation very seriously and I would suggest that you obtain formal legal advice from a Solicitor that deals with debt issues.


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You have 18 days from the date the SD was received to apply for the set aside.

 

You need to avoid bankruptcy, as I think you may struggle to keep the job as a Mortgage Advisor if you are bankrupted. If you are employed within financial services, your personal financial conduct can lead to your employment being ended. Working in Insurance, I have come across staff having problems when they just have a CCJ against them.

 

For this reason, you have to take this situation very seriously and I would suggest that you obtain formal legal advice from a Solicitor that deals with debt issues.

 

I agree with this right here,,, just having a CCJ can cause huge issues, while being bankrupt can throw you to the wolves...

Right,... Id say £500 is way to much to kick off £300 a month for a debt of that size is viable

 

If you are able to avoid bankruptcy then you could raise the amount you are paying / will be paying to help clear it quicker...

I would assume the SD offers you the opportunity to come to payment arrangements with the School / Solicitors etc

 

While we can assist here Sequenci is right...

Because the debt isnt something like a loan or credit card debt etc... its harder to really help as with those a DMP is perfect if its too much

 

But £25k for school fees, i would say legal advice would be great idea for you.


 

We could do with some help from you.

 

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

**Fko-Filee**

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You have 18 days from the date the SD was received to apply for the set aside.

 

You need to avoid bankruptcy, as I think you may struggle to keep the job as a Mortgage Advisor if you are bankrupted. If you are employed within financial services, your personal financial conduct can lead to your employment being ended. Working in Insurance, I have come across staff having problems when they just have a CCJ against them.

 

For this reason, you have to take this situation very seriously and I would suggest that you obtain formal legal advice from a Solicitor that deals with debt issues.

 

Also I thought that was the case from the date youve received it to have it set aside.


 

We could do with some help from you.

 

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

**Fko-Filee**

Receptaculum Ignis

 

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You have 18 days from the date the SD was received to apply for the set aside.

 

You need to avoid bankruptcy, as I think you may struggle to keep the job as a Mortgage Advisor if you are bankrupted. If you are employed within financial services, your personal financial conduct can lead to your employment being ended. Working in Insurance, I have come across staff having problems when they just have a CCJ against them.

 

For this reason, you have to take this situation very seriously and I would suggest that you obtain formal legal advice from a Solicitor that deals with debt issues.

 

My future employer knows my current history and as they are directly authorised, they have bankrupts they have employed in the past, but I do understand your point.

 

I had assumed the school would apply for a charging order or CCJ, not bankruptcy to end all hopes. They know we have 4 kids and have tried to resolve this. Should I talk to Redwoods or the school direct?

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Speak to the school direct and cut out redwoods....

Although they may be specialist in legal action, they still have no rights if they haven't bought the debt

 

I have the feeling they aren't a Debt sale company but more a Debt administrator, so the original Creditor will be the School and will still be that even though Redwoods have sent a SD


 

We could do with some help from you.

 

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

**Fko-Filee**

Receptaculum Ignis

 

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I don't think there are grounds to even consider a set aside here, if the money is owing then it's more important to concentrate on ways to prevent a creditor's petition. I know a voluntary charge isn't everyones' cup of tea - but if it protects the house then it's the lesser of two evils, if you see what I mean? School fees are unlikely to be challengeable from a technical perspective in the same way as credit cards and loans etc. unless, of course, you entered in to a personal loan with a finance firm to cover the fees (I've seen this in the past).

 

I could be worth seeking legal advice, though, and as the others have mentioned ensure that they're up on consumer debt issues. If there is a law centre near you they're very good - and free:

 

http://www.lawcentres.org.uk/

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Ok, not looking too good at the moment.

 

 

Spoke to Redwoods to put forward a proposal of £150 per month to be reviewed after 3 months

when I should hopefully have more income coming in.

 

 

They said the school was looking for more like £2,000 per month, but that they would put my offer forward.

As it is half term we won't hear back until next Monday.

Redwoods confirmed the 21 days starts from when SD was received, not dated, so that gives us a bit longer.

 

I spoke to my mortgage company to see if they would do a voluntary charge but each case needs to be submitted and assessed individually,

so I don't know if that will be viable or not.

I also spoke to an IVA company, but this needs a fixed, provable income with a slight surplus.

 

Any other ideas?

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Don't deal with Redwoods... Deal with the school!

 

Redwoods will say anything! You cannot be expected to pay 2k a month, that's just unreasonable.

 

Remember although this isn't a credit debt, Redwoods are still regulated heavily and if £150 a month with review after 3 months isn't good enough then the judge will lean to yoir side...

 

That's because you are making an effort to pay this :-)

 

Keep going and don't let them win.


 

We could do with some help from you.

 

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

**Fko-Filee**

Receptaculum Ignis

 

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